8-Product _ Brand Management

8/10/2019 8-Product _ Brand Management

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8-PRODUCT & BRAND MANAGEMENT

BRAND EQUITY MODELS AND HOW

TO BUILD BRAND EQUITY.


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What is Brand Equity?

Brand equityis the added value endowed

on products and services, which may be

reflected in the way consumers, think, feel,

and act with respect to the brand.


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Brand Knowledge

Knowledge

Thoughts

Experiences

BeliefsImages

Feelings


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Secondary Sources of

Brand Knowledge


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The Role of Brands

Signify quality

Create barriers to entry

Serve as a competitive

advantage

Secure price premium


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The Role of Brands

Identify the maker

Simplify product handling

Organize accounting

Offer legal protection


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How To Build Brand Equity. Marketers Build Brand Equity by creating the Right Brand Knowledge

Structures with the Right Consumers. There are Three Main Sets of

Brand Equity Drivers:1) The Initial Choices for the Brand Elements or Identities making up the

Brand (e.g.; Brand Name, URLs, Logos, Symbols, Characters,Spokespeople, Slogans, Jingles, Packages, and Signage)

Old Spice uses Bright Red Packaging and its familiar Ocean Schooner toreinforce its nautical theme while also launching Deodorant and

Antiperspirant Extensions adding the High Endurance and Red ZoneBrand Names.

2) The Product and Service and all accompanying Marketing Activitiesand Supporting Marketing Programs.

Joe Boxer made its name selling colorful underwear with its signatureyellow smiley face, Mr. Licky, in a hip, fun way. The Company spent

almost zero on advertising, clever stunts and even garnered publicityand word of mouth. An Exclusive deal with Kmart has generatedstrong Retail support.

3) Other Associations indirectly transferred to the Brand by Linking it tosome other entity (e.g.; a Person, Place or Thing).

Subaru used the Rugged Australian Outback and Actor Paul Hogan of

Crocodile Dundee movie fame in Ads to help craft the Brand Image ofthe Subaru Outback Line of Sports Utility Wagons.


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Brand Equity Models. Although there is agreement about Basic Principles about

how to Build Brand Equity, a number of Brand Equity Modelshave been developed by various Marketing Experts offeringdifferent perspectives.

Following Four Brand Equity Models are very well known andare used by Manufacturers and Marketers to Build BrandEquity.

1) Brand Asset Valuator Model.

2) BRANDZ Model.

3) Aaker Model.

4) Brand Resonance Model (also known as Customer BasedBrand Equity Model-CBBE Model). We have alreadydiscussed this CBBE Model and hence will discuss now thefirst three Model listed above


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Brand Asset Valuator.

C


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BAV Key Components. 1) Differentiation: It Measures the Degree to which a Brand is

seen as different from others.

2) Relevance: It Measures the Breadth of the Brands Appeal. 3) Esteem: Esteem Measures how well the Brand is Regarded

and Respected.

4) Knowledge: It Measures how familiar and intimate

Consumers are with the Brand.

Knowledge and Esteem Create Brand Stature and more a

Report Card on Past Performance.

Differentiation and Relevance combine to determine Brands

Strength and Future Value.


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Brand Dynamics Pyramid

(BRANDZ MODEL)

Presence

Relevance

Performance

Advantage

Bonding

Strong Relationship

Weak Relationship


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Brandz Model of Brand Equity. Brandz Marketing Research Consultants Millward Brown and

WPP have developed the BRANDZ Model for Brand Strength, atthe Heart of which is the Brand Dynamics Pyramid. According

to this Model, Brand Building involves a sequential series ofsteps, where each step is contingent upon successfullyaccomplishing the previous step.

The Objectives at each step, in ascending order, are as follows:

Presence. Do I know about it?

Relevance. Does it offer me something? Performance. Can it deliver?

Advantage. Does it offer something better than others?

Bonding. Nothing else beats it.

Research has shown that Bonded Consumers, those at the Top

Level of the Pyramid, Build Stronger Relationship with theBrand and spend more of their category expenditures on theBrand than those at lower level of the Pyramid.

More Consumers, however, will be found at lower levels. TheChallenge of Marketers is to develop activities and programsthat help Consumers move up the Pyramid.


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AAKER MODEL OF BRAND EQUITY.


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AAKER MODEL (Contd) According to Aaker, a particularly important concept for

building Brand Equity is Brand Identity-the Unique set ofBrand Associations that represent what Brand stands for

and promises to Customers.

Aaker sees Brand Identity as consisting of 12 Dimensions

organized around 4 perspectives:

Brand as Product ( Product Scope, Product Attributes,Quality/Value, Uses, Users, Country of Origin).

Brand as Organization (Organizational Attributes, Local Vs

Global)

Brand as a Person (Brand Personality, Brand Customer

Relationships) Brand as Symbol( Visual Imagery/Metaphors and Brand

Heritage)


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Aaker Model (Contd).

Brand Identity

Extended Identity

ElementsBrand Essence

Core Identity

Elements


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Aaker also conceptualizes Brand Identity as including a Core and an

Extended Identity. The Core Identity-the Central, Timeless Essence of

the Brand-is most likely to remain constant as the Brand travels to

New Markets and Products. The Extended Identity includes variousBrand Identity Elements, organized into cohesive and meaningful

groups.

If we apply this approach to Saturn, the newest General Motors Car

Division, it will result into following:

Core Identity:A World Class Car with Employees who treatCustomers with respect and as friends.

Extended Identity:U.S.subcompact with Spring Hill, Tennessee,Plant, no pressure, no haggling, informative Retail Experience,

friendly, down to earth, youthful and Lively Personality; Committed

Employees and Loyal Users.


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Brand Roles in a Brand Portfolio

Flankers

Low-endEntry-level

High-endPrestige

Cash Cows

8-Product _ Brand Management

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